Washington Prime Lenders Spar Over Assets as Talks Drag On (1)

Washington Prime Group Inc.’s creditors are having difficulty advancing discussions over a planned Chapter 11 filing as groups tussle over dividing the mall owner’s assets, according to people familiar with the talks.

The slow talks have sparked several deadline extensions -- the latest announced Wednesday -- with sticking points including creditors’ rights to assets that aren’t already being used as collateral for Washington Prime’s debt, the people said, asking not to be named discussing a private matter. The company on Monday reported a $55 million loss for the three months through March 31.

At issue is the division of ...